Zengame Technology Holding Ltd. (HK:2660)
:2660
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Zengame Technology Holding Ltd.
(2660)
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Rating:78Outperform
Price Target:
HK$3.00
▲(16.73% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by strong valuation support (low P/E and high dividend yield) and a conservatively positioned balance sheet with minimal leverage. Offsetting these positives are weaker cash flow quality in 2025 and evidence of cooling operating profitability, while technicals are bullish but overbought, increasing near-term volatility risk.
Positive Factors
Conservative balance sheet
Very low debt-to-equity and a large equity base give the company durable financial flexibility. This conservatism reduces solvency risk, supports continued investment in live-ops, content updates and user acquisition, and cushions the business through gaming cycle volatility.
Negative Factors
Revenue and margin deterioration
A sustained downtrend in revenue and compressed operating margins versus 2022–2024 highs indicates weakening core game performance or rising costs. This reduces growth runway and makes future profit expansion harder without new hit titles or meaningful cost restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low debt-to-equity and a large equity base give the company durable financial flexibility. This conservatism reduces solvency risk, supports continued investment in live-ops, content updates and user acquisition, and cushions the business through gaming cycle volatility.
Read all positive factors
Zengame Technology Holding Ltd. (2660) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.66B
Dividend Yield13.83%
Average Volume (3M)610.00K
Price to Earnings (P/E)6.7
Beta (1Y)0.39
Revenue Growth-6.66%
EPS Growth-19.70%
CountryHK
Employees494
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,035,881,700
10 Day Avg. Volume637,150
30 Day Avg. Volume610,000
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.90
Price to Sales (P/S)1.50
P/FCF Ratio10.22
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zengame Technology Holding Ltd. Business Overview & Revenue Model
Company Description
Zengame Technology Holding Limited develops and operates mobile games in the People's Republic of China. The company offers card and board games, as well as other casual mobile games. It also provides technical services. As of December 31, 2021, i...
How the Company Makes Money
Zengame primarily makes money by operating its mobile games under a free-to-play model and monetizing players through in-game purchases. Revenue is generated when users buy virtual items and services (e.g., in-game currency, consumables, time-savi...
Zengame Technology Holding Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.55B | 1.66B | 2.06B | 1.77B | 1.47B |
| Gross Profit | 785.50M | 918.63M | 1.23B | 1.14B | 905.38M |
| EBITDA | 388.11M | 545.38M | 897.26M | 773.65M | 607.22M |
| Net Income | 347.79M | 430.68M | 725.88M | 680.78M | 500.34M |
Balance Sheet | |||||
| Total Assets | 2.84B | 2.88B | 2.64B | 2.05B | 1.49B |
| Cash, Cash Equivalents and Short-Term Investments | 2.28B | 2.22B | 1.92B | 1.29B | 1.15B |
| Total Debt | 18.83M | 24.49M | 5.10M | 21.53M | 18.47M |
| Total Liabilities | 249.90M | 316.85M | 320.52M | 284.90M | 262.62M |
| Stockholders Equity | 2.58B | 2.56B | 2.32B | 1.77B | 1.23B |
Cash Flow | |||||
| Free Cash Flow | 226.51M | 473.36M | 709.00M | 726.05M | 500.28M |
| Operating Cash Flow | 242.40M | 490.03M | 720.85M | 732.35M | 507.06M |
| Investing Cash Flow | -100.41M | -781.80M | -164.37M | -246.83M | -77.01M |
| Financing Cash Flow | -345.43M | -232.65M | -210.13M | -143.85M | -68.63M |
Zengame Technology Holding Ltd. Technical Analysis
Neutral
2.57
Price Trends
2.52
Positive
2.49
Positive
2.41
Positive
Market Momentum
0.02
Positive
43.10
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2660, the sentiment is Neutral. The current price of 2.57 is below the 20-day moving average (MA) of 2.67, above the 50-day MA of 2.52, and above the 200-day MA of 2.41, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2660.
Zengame Technology Holding Ltd. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$2.66B | 6.66 | 13.33% | 13.83% | -6.66% | -19.70% | |
62 Neutral | HK$1.53B | 25.74 | 3.09% | 7.30% | -2.73% | ― | |
61 Neutral | HK$970.48M | 9.21 | 7.59% | ― | 7.36% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | HK$1.76B | 15.81 | 6.38% | ― | -27.41% | 138.08% | |
50 Neutral | HK$1.82B | -28.92 | -1.78% | ― | 14.35% | 87.20% | |
43 Neutral | HK$776.47M | -0.70 | -50.58% | ― | -28.02% | 34.04% |
* Communication Services Sector Average
HK:2660
Zengame Technology Holding Ltd.
2.57
0.63
32.47%
HK:9990
Archosaur Games Inc.
2.26
0.78
52.70%
HK:0302
CMGE Technology Group Limited
0.25
-0.21
-45.87%
HK:3798
Homeland Interactive Technology Ltd.
1.19
0.05
4.39%
HK:6633
Qingci Games, Inc.
2.54
-0.02
-0.78%
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FriendTimes Inc.
0.45
-0.13
-22.47%
Zengame Technology Holding Ltd. Corporate Events
Zengame Sets 2026 AGM to Approve Results, Dividend and Capital Mandates
Apr 28, 2026
Zengame Technology Holding Limited has called its annual general meeting for 22 May 2026 in Shenzhen, where shareholders will review and approve the audited financial statements for the year ended 31 December 2025 and vote on a proposed final divi...
Zengame Invests USD75.8 Million in Low-Risk JPMorgan Wealth Products
Apr 16, 2026
Zengame Technology Holding Ltd. has disclosed that, as of 16 April 2026, it invested approximately USD75.8 million in wealth management products subscribed through JPMorgan Chase, including money market funds and new certificate of deposit placeme...
Zengame Technology Announces HKD 0.2 Final Dividend for 2025
Mar 25, 2026
Zengame Technology Holding Limited has proposed a final ordinary cash dividend of HKD 0.2 per share for the financial year ended 31 December 2025, underscoring its continued focus on shareholder returns and cash distribution. The payout, subject t...
Zengame Profit Falls in 2025 as It Leans on Flagship Mahjong Game and Gameplay Innovation
Mar 25, 2026
Zengame reported a 6.8% decline in revenue to RMB1.55 billion and a 19.2% drop in profit to RMB347.8 million for 2025, as gross margin and net margin both narrowed despite resilient performance from its core titles. Earnings per share fell, but th...
Zengame Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 13, 2026
Zengame Technology Holding Ltd. has scheduled a board meeting for Wednesday, 25 March 2026 to review and approve the audited consolidated financial statements for the year ended 31 December 2025 and to consider their publication. The board will al...
Zengame Fully Redeems UBS Money Market Funds, Books USD 0.7 Million Gain
Mar 10, 2026
Zengame Technology Holding Ltd. has actively used low-risk money market funds and other wealth management products from different financial institutions as part of its treasury management, focusing on optimizing cash utilization while maintaining ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.